Board of Commissioners Meetings

Superintendent's Recommendation:

MOTION TO ADOPT THE 2026 OPERATING BUDGET FOR HYLAND GREENS GOLF COURSE WITH REVENUES AND EXPENSES OF $781,020.

Prepared By: Howard Koolick, Chief Financial Officer; Jeff May, Director of Enterprise Operations; Brad Chock, Director of Maintenance; Mark Hill, Golf Operations Supervisor; and Mark Boonstra, Golf Maintenance Supervisor.

Background:

Three Rivers Park District now owns Hyland Greens Golf Course (the facility was given to the Park District in April of 2024). The specifics of the proposed operating budget are discussed in the attached 2026 recommended budget packet. An overview of the proposed budget includes revenues and expenses of $781,020.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 1: You Belong Here

Goal 2: Parks Matter

Goal 3: Lead by Example

Attachments:

2026 Hyland Greens Proposed Budget.pdf

Superintendent's Recommendation:

MOTION TO ADOPT THE 2026 OPERATING BUDGET FOR PARKERS LAKE GOLF CENTER, WITH REVENUES AND EXPENSES OF $225,000 INCLUDING A BUDGETED CONTINGENCY OF $24,141.

Prepared By: Howard Koolick, Chief Financial Officer; Jeff May, Director of Enterprise Operations; Brad Chock, Director of Maintenance; Troy Nygaard, Golf Operations Supervisor; and Mark Boonstra, Golf Maintenance Supervisor.

Background:

Three Rivers Park District entered into a cooperative agreement in 2020 to operate Parkers Lake Golf Center. The specifics of the proposed operating budget are discussed in the attached 2026 recommended budget packet. An overview of the proposed budget includes revenues of $225,000 and operating expenses of $225,000 including a contingency of $24,141.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 1: You Belong Here

Goal 2: Parks Matter

Goal 3: Lead by Example

Attachments:

2026 Parkers Lake Proposed Budget.pdf

Superintendent's Recommendation:

MOTION TO INCREASE THE CONSTRUCTION BUDGET FOR THE NINE MILE CREEK REGIONAL TRAIL RECONSTRUCTION FROM MN RIVER BLUFFS REGIONAL TRAIL TO 7TH STREET SOUTH IN HOPKINS BY $81,205.53, WITH FINANCING FROM THE 2024 AND 2025 ASSET MANAGEMENT PROGRAMS, INCLUDING FUNDING FROM A 2024 MET COUNCIL LEGACY GRANT (SG-24P5-09-8) AND FEDERAL STATE TRANSPORTATION IMPROVEMENT PROGRAM (STIP) FUNDS.

Prepared By: Katie Warner, Project Manager

Background:

The Board awarded a construction contract and construction administration contract for the Nine Mile Creek Regional Trail Reconstruction project from MN River Bluffs Regional Trail to 7th Street South in Hopkins, MN at the July 17, 2025 meeting and set a construction budget of $1,020,767.62.

The project is actively under construction and has encountered several unanticipated field conditions requiring design and scope adjustments:

• Original curb, gutter, trail, and grading designs conflicted with floodplain elevations per Nine Mile Creek Watershed District. Curb elevations exceeded existing grades, resulting in fill within the floodplain. Design was revised to lower curb elevations, requiring milling and overlay of the roadway. Earthwork was modified to provide compensatory floodplain storage.
• During storm sewer installation, the existing watermain depth was found to be shallower than anticipated - roughly 5.5’-6.5’ deep (typically 7.5'-8'). The storm sewer was modified in two intersections to avoid the watermain conflict.
• A property owner requested bituminous replacement for a driveway apron instead of concrete to allow uninterrupted delivery access. High early concrete and phased pours were declined. This change resulted in a cost savings.
• Field measurements revealed the bid quantity for the retaining wall was insufficient. Additional materials were required to complete the wall as designed.

Administrative policy when a contract increases by more than 10 percent:

The current construction contract change order policy recommends Board approval when a construction contract increases beyond the 10 percent contingency allowance. The cost for the unanticipated conditions noted above is $116,767.51

To account for the fluctuations in potential cost for the unit price contract, an additional 5 percent contingency of the base bid amount has been included in the proposed budget increase in the amount of $35,561.98

Consequently, staff is seeking Board approval to increase the Construction budget by $81,205.53.

Existing project funds are available to cover the additional construction costs.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 1: You Belong Here

Goal 2: Parks Matter

Goal 3: Lead by Example

Superintendent's Recommendation:

MOTION TO AUTHORIZE THE CHIEF FINANCIAL OFFICER TO PROCEED WITH THE PREPARATION OF AN OFFICIAL STATEMENT, SET SALE CONDITIONS AND SOLICIT BIDS FOR THE 2025 GENERAL OBLIGATION BONDS IN AN AMOUNT OF $9,325,000.

Prepared By: Shaan Hamilton, Chief Financial Officer and Kelly Grissman, Director of Planning

Background:

On December 19, 2024, the Board of Commissioners approved the 2025 Asset Management Program (AMP) totaling $28,427,851. Staff is recommending $2,000,000 be added to the amount to be financed to replenish the funds available for land acquisition.

The Land Acquisition, Betterment and Development (LADB) Fund is used to pay the Park District's share of land acquisition costs. As we have done in the past, we have used bond proceeds to replenish the balance in this account. The LADB Fund has an available cash balance as of October 1, 2025 of $1,429,491 for future land acquisitions. The LADB has no on-going revenue sources except for interest earnings (which are approximately $40,000 per year). Planning Director Kelly Grissman is estimating that over the next 18 months we will need $1,355,498 for anticipated acquisitions leaving $73,993 available for any new acquisitions; thus we would have almost no money for potential acquisitions until we replenish the fund.

Acquisition activity has increased dramatically in the last two years as higher interest rates have made it more challenging for sellers to find buyers. Staff expects this trend to continue meaning funds could be depleted or acquisition opportunities lost before June of 2027.

The AMP is funded by a variety of sources including Park District bonds, cash on hand and federal, state and local grants. The following is a summary of the funding sources:

The changes in funding are a result of the Park District's Lottery-in-lieu-of collections exceeding the planned amount, reallocating existing funds from prior bond issues to fund a portion of the projects in the 2025 AMP and including an additional $2 million in bonding for land acquisition costs.

The $9,325,000 in bonds will generate $9,510,315 in proceeds to fund project costs since the bonds are expected to sell at a premium (selling above face value) due to the Park District's excellent bond rating and current market conditions. The Park District currently maintains a Aaa rating, the highest rating possible, from Moody's Investor Services. This rating allows the Park District to borrow at the lowest possible interest rate.

In addition to the amount needed for the project costs, the bonds need to fund the cost of issuance, which includes fees to have the bonds rated, the work of our fiscal consultant, bond counsel fees and the underwriter's discount ("profit margin" for reselling bonds to the public).

These fees and charges are estimated to be $68,000. The bonds also include the cost of the first interest payment (capitalized interest) of $297,882, which is due prior to the collection of property taxes in 2026.

The Bonds are recommended to be 26-year bonds in order to maintain an average property tax levy of $675,000 over the life of the bonds. The following is a summary of the proposed Bonds:

The attached "Debt Service Projection Report" shows how this proposed bond issue impacts future debt service tax levies.

The Park District's limit on debt outstanding without voter approval is one-tenth of one percent of the Park District's taxable value, or $185,771,885. Including the proposed Bonds, the total outstanding bonded debt for the Park District will be $63,385,000. The amount of bonds scheduled to be retired during the next five years (including the proposed bonds) is as follows:

These maturities represent 51% of the Park District's outstanding total bonded debt. This is a high percentage and is highlighted as a positive factor each time Moody's rates our bonds.

Next Steps

If the proposed motion is approved, the Board will be presented a resolution awarding the sale of the Bonds at the November 13, 2025, Board meeting. The resolution will award the Bonds to the lowest bidder, set the interest rates and require the Board to levy taxes in 2025 through 2050 to fund annual payments.

Approval of the recommended motion is the first step in the bond process. If approved, the Chief Financial Officer will begin working with the Park District's fiscal advisor and bond counsel to prepare an official statement and solicit bids for the bonds. It is important for Commissioners to understand that the bond market views the issuance of an official statement and receipt of bids as a commitment by the Park District to complete the bond sale. Failure to complete the sale would adversely impact the Park District's ability to issue bonds in the future.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 2: Parks Matter

Goal 3: Lead by Example

by financing park improvements as part of a well-planned and managed long-term debt strategy.

Attachments:

Debt Service Projection Report.pdf

Superintendent's Recommendation:

NO ACTION REQUIRED; THIS ITEM IS FOR INFORMATION AND DISCUSSION.

Prepared By: Howard D. Koolick, Chief Financial Officer and Jason McGrew-King, Intergovernmental Relations and Communications Supervisor

Background:

The Superintendent has led senior management through the budget process and is ready to recommend the 2026 General Fund budget to the Board of Commissioners. The 2026 Recommended General Fund budget totals $55,413,013; an increase of $2,156,364 over the 2025 budget. The following table shows the major revenue increases for 2026:

These revenue increases roughly follow the percentage breakdown of the existing budget with approximately 76% of revenue coming from property taxes and 24% from other sources. The recommended revenue increases are in line with the budget goal to use non-tax revenues to maintain a low annual property tax increase.

A part of the budget process was a review of proposed property tax increases for communities in suburban Hennepin County. Staff was able to gather a sampling of preliminary tax increases for 24 cities. The average percentage increase for these cities was 8.87% while the range was 4.4% to 15.87%. The following is an abbreviated listing of cities from each District.

• City of Bloomington - 9.44%
• City of Brooklyn Park - 8.00%
• City of Eden Prairie - 5.6%
• City of Edina - 11.03%
• City of Maple Grove - 6.35%
• City of Minnetonka - 7.935%
• City of Minnetrista - 9.1%
• City of Plymouth - 7.3%
• City of Robbinsdale - 8.00%
• City of St. Louis Park - 8.02%

Expenditure increases were prioritized based on maintaining existing service levels, providing competitive wages and benefits to employees, meeting contractual obligations, and providing flexibility to respond to changing conditions and needs. The following table shows the recommended expenditure increases:

The 2026 General Fund Budget Book, which will be provided to the Board for the November Board meeting, will contain a narrative description of the Park District, its goals for 2026 and budget changes that will help reach those goals. It will also contain a variety of tables showing breakdowns of the above amounts by department and type of revenue/expense. An initial draft of the narrative portion and several of the tables is attached for your review and comment.

Relationship of Board Action to the Budget

The Park District's budget process is a six to eight month process that includes a number of steps and board actions to complete. The following graphic shows how this board action fits into the budget process and where the District is in the process. The blue information on the timeline shows where we are in the budget process.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 2: Parks Matter

Goal 3: Lead by Example

by ensuring the Park District's finances are property planned and managed.

Attachments:

Draft 2026 General Fund Budget Book.pdf

Superintendent's Recommendation:

MOTION TO SCHEDULE A PUBLIC HEARING ON NOVEMBER 13, 2025, AT 5:30 PM, OR AS SOON THEREAFTER AS POSSIBLE, TO RECEIVE PUBLIC COMMENT ON THE PROPOSED 2026 GENERAL FUND OPERATING BUDGET.

Prepared By: Howard D, Koolick, Chief Financial Officer

Background:

The Park District, although not required to, has historically held a public hearing on the General Fund budget before approving and submitting the budget to the Hennepin County Board for their review. The purpose of this hearing is to provide an opportunity for the public to review the budget and provide comments to Commissioners.

Staff recommends that the public hearing be held at the next regular Board Meeting on November 13, 2025. The motion sets the time of the hearing as 5:30 or as soon thereafter as possible, meaning that the hearing should begin at 5:30 pm or, if the Board is in the middle of another agenda item, shortly after the conclusion of that item. Staff is recommending a 5:30 start to allow any interested citizens who may work until 4:30 pm or 5:00 pm time to commute to the Administrative Center to participate in the meeting.

At the end of the hearing, the Board of Commissioners will be asked to approve the budget and authorize its submittal to Hennepin County. Once submitted, the County has fifteen days to review and propose changes to the budget. The Park District budget and presentation will either be part of their committee meetings on December 2nd or go straight to the County Board on November 18th. The budget, with any input from Hennepin County, and final tax levy will be presented to Commissioners on December 18, 2025, for approval which will complete the budget process.

Superintendent's Recommendation:

NO ACTION REQUIRED; THIS ITEM IS FOR INFORMATION AND DISCUSSION.

Background:

Commissioners are encouraged to share announcements and discuss ideas for future topics of interest.

Attachments:

Board Proposed Discussion Topics.pdf